The ONGC-Mittal combine is looking at buying oil and gas properties in 21 countries, steel baron, Mr L.N. Mittal, has said. The joint venture ONGC Mittal Energy (OMEL) would seek investment opportunities in 21 countries. The venture will restrict its investments to exploration and would not go into refining, he said.
OMEL is a joint venture between OVL and Mittal Investments Sarl where the two jointly hold 98 per cent of the equity and two per cent is with SBI Caps. The distribution of equity between Mittal and OVL is in the proportion of 49 per cent (Mittal) and 51 per cent (OVL). OMEL is registered in Cyprus.
OMEL is seeking investments in Kazakhstan, Sudan and Nigeria. The company would invest more than $6 billion in setting up refinery, power plant and railway lines in Nigeria. OMEL is finalising the investment proposals for setting up a 15 million tonnes per annum export-oriented refinery, a 2,000 MW power plant and railway lines in the African country. These investments are part of an understanding between ONGC and the Nigerian Government, wherein OMEL would create the infrastructure and the African country would give them oil blocks.
The joint venture has recently won two lucrative oil fields in Nigeria. OMEL had won Blocks OPL 209 and OPL 212 in the Nigeria 2006 mini bid round. The recoverable reserves potential estimated from a few clearly delineated prospects in the blocks are expected to be over one billion barrels of oil and oil equivalent gas.
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| Posted : 7/8/2006 |
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